GRAND RAPIDS, MI — The Skywalk Deli, a popular breakfast and lunch stop for the downtown office crowd, is closing its doors this year after the owner says he was told by new landlords that a well-known restaurant chain is moving in underneath him.

Chris Fehsenfeld, owner of the deli and sandwich shop on the second floor of the Comerica building, along the downtown pedestrian Skywalk, said the Franklin Partners LLC, which bought the building in June, gave him until December to vacate.

The reason: A rumored, but not confirmed Panera Bread bakery café location that would fill a 6,000-square-foot space on the ground floor of the 27-year-old office building, which has struggled to fill the upstairs tenant spaces in recent years.

Panera “wouldn’t sign if there was another deli in the building,” said Fehsenfeld, who is disappointed at the prospect of having to abandon his location of 10 years after establishing a solid downtown clientele.

“A Panera would hurt us tremendously,” he said.

Don Shoemaker, president of Franklin Partners, a Chicago-based real estate firm, wouldn’t confirm whether the Panera rumors were true, but said that no lease has been signed as of Monday for the first-floor space.

Shoemaker said in July that the firm was looking to find a restaurant tenant for the building, which overlooks Rosa Parks Circle and a pedestrian plaza leading to the JW Marriott Hotel. He declined further comment on the matter.

Fehsenfeld said he was approached by the new building managers about writing a proposal for the first-floor space two weeks ago, but was told last Tuesday that Franklin was going with Panera.

Fehsenfeld, who lives in Pierson and previously helped open Flanagan’s Irish Pub, the Cascade Roadhouse and Churchills (now Bull’s Head), was going to propose a New York style deli and grocery story with fresh meats, produce and baked goods.

“I think it would have really enhanced the building, but (Franklin) is looking for an anchor store and a big name,” he said.

It’s sad, but he understands.

“I don’t begrudge them,” he said. “They are doing their thing. It’s the way business works.”

The Skywalk Deli has existed largely on word-of-mouth endorsements since opening in 2002. The small, eclectic atmosphere deli has built a loyal following based on its fresh, homemade sandwiches (built on Schnitz bread), soups and salads — despite its relatively hidden location. Per city zoning rules, the deli cannot advertise its presence with street-level signage, he said.

The deli struggled through the recession, said Fehsenfeld, who used personal money to keep the deli afloat while the building struggled. Business has only begun to pick up again in the last 8 to 9 months.

Comerica Bank, McShane & Bowie and Miller Canfield law firms are currently the building’s largest tenants, but Fehsenfeld said he lost a lot of business when the BDO Seidman and Morgan Stanley Smith Barney firms relocated.

Franklin Partners bought the 12-story building at 99 Monroe Ave. NW from Westminster Campau LLC, in early June for $11.8 million, according to city tax records. The former owners bought the building in 2004 for $23.3 million from the Michigan State Employees Pension Fund.

Planned upgrades will include the building’s lobby and common areas on the ground floor and the second floor entry points from downtown’s skyway, Shoemaker said in July. The second floor improvements will include a workout center and conference rooms for tenants.

“I hope we can bounce back,” said Fehsenfeld. Because the deli is branded to the skywalk, a new downtown location would have to feature a new name.

He’s planning to stay in the building until the year’s end. “We’d like to stay as long as we can. We’ve got a lot of loyal customers we don’t want to disappoint.”